Gold headed for the first weekly climb since February, extending a rebound from a three-month low, after the Federal Reserve signaled a slower pace of U.S. interest rate increases.
Bullion for immediate delivery traded at $1,171.90 an ounce by 8:54 a.m. in Singapore from $1,171.18 on Thursday, rising 1.2 percent this week, according to Bloomberg generic prices. The metal fell to $1,142.92 on March 17, the lowest since Dec. 1, after posting two weekly losses through March 13.
The Fed said on Wednesday economic growth had “moderated somewhat” and inflation remains below the desired level. Officials dropped a pledge to be “patient” in tightening policy, even as they lowered their projections for rates by the end of the year. Raising rates would be appropriate when the Fed sees further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term, Chair Janet Yellen said.